December | Lifting Our Game for a Brighter Future

Australia’s Living Standards: Time to Lift Our Game

As the year winds down, many of us are settling into the good stuff—beach cricket, backyard BBQs, and watching the Boxing Day Test with a cold drink in hand. But while we’ve been enjoying the summer vibes, Australia’s living standards have been taking a bit of a hit, and it’s time we all had a look at the scoreboard. Rising costs, falling wages, and heavier tax and interest burdens have left many feeling like they’re playing catch-up. And, just like in cricket, when the runs dry up, it’s time to change tactics.

A Stagnant Innings
Our collective “run rate” has slowed, thanks largely to stagnant productivity growth. In the 1990s, Australia was knocking sixes with productivity growth over 2% per year. But since 2016, it’s been near zero—like a Test match stuck in a rain delay. The factors at play? Sluggish wage growth (prices up 18.7% since 2020, wages only up 12.9%), clogged urban centres, policy indecision, and government spending soaring past 25% of GDP. It’s all combined to make living standards feel like they’re stuck in the pavilion.

Time for a New Game Plan
Turning things around requires a fresh strategy. Think of it like rebalancing the batting order: we need tax reforms to incentivise investment, competition reforms to reduce market monopolies, and incentives for adopting new technologies. Tackling housing affordability by matching population growth with new homes could help ease the pressure on cities, while providing certainty in climate policy could stabilise energy costs. Limiting government spending to 25% of GDP is another way to ensure we’re not overspending on extras when we can’t even afford the basics.

Stay Safe This Festive Season
Of course, as the holidays approach, it’s important to keep an eye on the field—not just the cricket field, but the scams that spike during the silly season. Avoid suspicious links, shop with reputable retailers, and double-check deals that seem too good to be true. If you’re enjoying some beach cricket, make sure you’re keeping your personal finances just as secure as your cover drive.

Looking Ahead
Much like a close cricket match, improving living standards requires focus, teamwork, and a solid plan. While we can’t control everything—like the weather or a poorly timed LBW decision—we can ensure that the actions we take today set us up for a better tomorrow. Let’s toast to 2025 with the same care we’d put into picking the perfect summer wine: thoughtfully, deliberately, and with a vision for enjoying the rewards.

Here’s to lifting our collective game—whether it’s with our finances, our policies, or just keeping the beach cricket ball out of the esky. Let’s make the next innings one to remember